The National Perspective: Trillion-Dollar Questions and Answers. Rich Juliano, CAE Senior Vice President for Strategic Initiatives

Transcription

1 The National Perspective: Trillion-Dollar Questions and Answers Rich Juliano, CAE Senior Vice President for Strategic Initiatives

2 Founded in 1902, ARTBA is the Consensus Voice focused exclusively on the transportation construction industry. Bi-partisan, aggressive and not afraid to fail 5,000-plus members from all sectors of the US transportation industry in all 50 states. 8 membership divisions ARTBA affiliation with OCA since 1942

3 Why Federal Funding matters Ohio = 60 percent

4 Context Fixing America s Surface Transportation (FAST) Act passed Dec Stabilized federal highway and transit programs through FY2020 Modest investment increases 5.1% in FY16, then 2+% per year (depending on state) Highway Investment for Ohio FY 2015 (baseline): $1.294 B FY 2016: $1.360 B FY 2017: $1.388 B FY 2018: $1.418 B FY 2019: $1.450 B FY 2020: $1.484 B

5 Context Fixing America s Surface Transportation (FAST) Act passed Dec Reaffirmed strong federal role in surface transportation National freight network Unfinished business Chronic Highway Trust Fund (HTF) insolvency since 2008 Highway and Transit Investment Outpacing HTF Revenues from Gas and Diesel Taxes Federal Gas and Diesel Taxes have not been raised since 1993 loss of buying power Seven (7) General Fund transfers to HTF - totaling $143 billion since 2008 Includes $70 billion transfer for FAST Act Undercuts user fee concept HTF insolvency problem returns in 2020 when FAST Act expires

6 CONTEXT Under the FAST Act

7 Context

8 ARTBA Project 2019 Task Force Two dozen industry leaders active in ARTBA and other groups Meeting at Caterpillar: July 2016 Focus: How to ensure sustainable and robust future funding for the federal highway and public transportation investment program. Reviewed and discussed, in the context of the current political environment: All of the major use-based funding options that are or could be available to achieve these goals National Infrastructure Bank concept and public and private financing options (Note: The Task Force would look at regulatory reforms next)

9 Consensus: ARTBA Project 2019 Task Force Our objective is to expand funding robustly to meet needs/performance outcomes identified by U.S. DOT in report to Congress just filling the hole and inflation is not acceptable outcome There has been no creative thinking on surface transportation funding in Congress or White House for two decades. We need to provide it. Politics of gas tax increase at federal level obvious deterrent to moving forward need to change discussion Packaging is key provide a mix of revenue streams give something to get something must be results oriented

10 ARTBA Project 2019 Task Force We should offer a comprehensive, multi-faceted Federal Transportation Revenue & Tax Reform /Investment Package Would fit in the context of overall tax reform Would provide funding for any infrastructure initiative from new Clinton or Trump Administration Any proposed new revenue streams should be dedicated to meeting a defined national need to rebuild public confidence in the federal program Must produce tangible, measurable benefits Not just provide more money for the highway and transit program

11 The BOLD Act Federal Transportation Revenue & Tax Reform/ Investment Package Initiate 6.25% federal Highway Transportation Services Tax (HTST) on the cost of shipping goods domestically by Class 7 and 8 heavy trucks Creates parity with long-standing 6.25% federal Air Cargo Tax which supports Airport & Airways Trust Fund programs Funding stream grows annually as U.S. economy grows Eliminate federal heavy truck taxes 12 percent federal excise tax (FET) on the sale of new heavy trucks, tractors and trailers Initiate Electric Road Vehicle Battery Excise Tax One time $870 tax on manufacturers - Deposited in Highway Trust Fund Mass Transit Account

12 The BOLD Act Comparison of FAST Act Revenue Streams to Proposed BOLD Act Revenue Streams

13 The BOLD Act Federal Transportation Tax Reform & Investment Package HIGHWAY TRANSPORTATION SERVICES TAX First $25B seed capital for National Infrastructure Bank start-up. Leverage to $225B for high-cost, multi-modal transportation infrastructure projects Support new Build America Bonds program President Trump suggesting bonds bipartisan supporters on Capitol Hill

14 The BOLD Act Federal Transportation Tax Reform & Investment Package HIGHWAY TRANSPORTATION SERVICES TAX After NIB start-up, revenue dedicated exclusively for investments to upgrade the 68,000-mile National Highway Freight Network designated by Congress in the 2015 FAST Act. SHIPPERS PAY, SHIPPERS SEE BENEFIT EVERYONE WINS Funds the Critical Commerce Corridors (3Cs) Program advanced by ARTBA since 2006, and made statutory in the 2015 FAST Act.

15 Candidate Trump

16 President-Elect Trump

17 President Trump

18 President Trump

19 President Trump Address to Congress, February 28 Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports and railways gleaming across our beautiful land Another Republican President, Dwight D. Eisenhower, initiated the last truly great national infrastructure program --- the building of the interstate highway system. The time has come for a new program of national rebuilding To launch our national rebuilding, I will be asking the Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States -- financed through both public and private capital --- creating millions of new jobs.

20 Trillion Dollar Questions How to define infrastructure? Do current projects count in that number? Public vs. Private Investment Trump Campaign Statements P3s/Tax Credits Bonding Congressional politics

21 Outlook Still a blank slate Tax bill as vehicle There may not be a separate infrastructure bill per se Potential exercise in bi-partisanship Role of Public Private Partnerships (P3s) Trump campaign paper tax credits Comments from Capitol Hill States have varying degrees of P3 readiness/willingness Project expediting and regulatory reforms

22 Key Congressional Committees Senate Finance Committee Senator Brown (D) and Senator Portman (R) Senate Environment & Public Works Committee Senate Banking, Housing & Urban Affairs Committee (Transit) Senator Brown (Ranking Democrat) House Ways & Means Committee Rep. Tiberi (R), Rep. Renacci (R) House Transportation & Infrastructure Committee Rep. Gibbs (R)

23 Ohio s Congressional Delegation

24 Targeted Capitol Hill Outreach Advancing the Agenda Transportation Construction-related National Associations and potential partners in other sectors Coalition-building Multi-faceted media and communications campaign FY 2021 $46B FY 2017 FY 2017 FY 2017 $22B $23B $25B FY 2017 Directed at DC area and decision-makers $12B Emphasis on modernizing and improving system performance Industry-wide grassroots involvement FY 2017 $13B FY 2017 $0 FY 2021 $25B

25 EconomicExpressway.org

26 Regulatory Reform ARTBA Priorities for new administration More than 20 federal policy/regulatory areas involving six departments/agencies Contact with new administration, key members of Congress Potential support for litigation and more ( flipping the script )

27 U.S. Department of Transportation DBE Local Hire PLAs Hours of Service Greenhouse Gas Emissions Buy America Proprietary Products CAFÉ Standards Regulatory Reform ARTBA Priorities for new administration

28 Regulatory Reform ARTBA Priorities for new administration U.S. EPA Water of the United States (WOTUS) Nationwide Permits Air Quality Standards Carbon

29 Regulatory Reform ARTBA Priorities for new administration U.S. Department of Labor/OSHA Silica Recordkeeping Blacklisting Overtime Paid Sick Leave Standards Improvement (MUTCD)

30 Regulatory Reform ARTBA Priorities for new administration U.S. Department of the Interior Endangered Species Act U.S. Equal Employment Opportunity Commission EEO-1 Form White House Council on Environmental Quality Greenhouse Gas Reviews

31 Types of Federal Policies/Rules Executive Orders and Guidance/Q&A Proposed Rule Revisions withdraw, depending on timing Final Rules withdraw with notice & comment Congressional Review Act So far Regulatory Freeze Department Regulatory Task Forces Executive Order on reorganizing the Executive Branch

32 Waters of the United States (WOTUS) Example of Possible Timeline Executive Order Issued to Withdraw - published in Federal Register (3/1) Intent to Withdraw published in Federal Register (3/3) Withdrawal Notice Comments Litigation likely Replacement Comments Litigation likely Final Rule

33 ARTBA Transportation Investment Advocacy Center TransportationInvestment.org

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35 The National Perspective: Trillion-Dollar Questions and Answers Rich Juliano, CAE Senior Vice President for Strategic Initiatives